Question 1: An parts of Eastern Europe, companies maintain special guards to protect payday funds, to help move products to market, and to enforce immediate payment for products sold to retailers. All of these features indicate:
- that property rights are respected and transactions costs are low.
- that property rights are weak and transactions costs are low.
- that property rights are weak and transactions costs are high.
- that property rights are respected and transactions costs are high.
Question 2: Most governments enforce patents, copyrights, and trademarks. While these are clear restrictions on free trade, it is believed that inventors and investors:
- generally oppose these restrictions as monopolistic.
- favor these restrictions since they promote inventive activities.
- are indifference since they have no impact on business.
- prefer low prices to patents.
Question 3: Ralph Nader has long argued that large corporations in oligopolistic markets should use their vast productive powers to redress social ills. Implementing this policy may put the company:
- in conflict with the government.
- in conflict with its trade unions.
- in conflict with the process of wealth maximization.
- on a list of companies disliked by religious groups.
Question 4:
Most governments enforce patents, copyrights, and trademarks. While these are clear restrictions on free trade, it is believed that inventors and investors:
- generally oppose these restrictions as monopolistic.
- favor these restrictions since they promote inventive activities.
- are indifference since they have no impact on business.
- prefer low prices to patents.